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What should I do if I have negative equity on my Ford Explorer?

"My car loan is for $28,000, but my Ford Explorer is only worth $20,000.

I want to lower my monthly payments, but I'm not sure where to start.

What should I do if I have negative equity on my car?"

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It’s unlikely that any lender will refinance you for the $8,000 in negative equity.
If you can afford it, put more money toward your principal each month. This might mean that you have to cut expenditures elsewhere. If you do this, you can reduce your negative equity at an exponential rate compared to just paying the monthly car note.
Next time you want a loan, shop around until you find a rate you can comfortably afford.”
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